If your business is utilizing cars, then you’re going to want commercial auto insurance to protect your company’s vehicles and their drivers. Simply put, a personal auto policy is not going to cover your business, even if your employees drive these cars outside of work hours. It definitely won’t cover your business if your employee hits someone and they decide to sue. In that case, both the small business owner and the company will be at fault and named in the lawsuit. That’s why it’s so important for every small business to have some type of commercial auto insurance as a part of their small business insurance
These are the reasons why your business needs this type of insurance:
With commercial auto insurance, you can protect vehicles that carry employees, products or equipment. Commercial auto insurance insures work cars, SUVs, vans and trucks from damage and collisions. But what happens when you don’t have a company vehicle? In that case, you’ll need non-owned auto liability coverage. This type of coverage protects a business in the event of the employee not having adequate coverage. This can often be added to a BOP policy.
Protection needs to come first when you’re a small business owner. You don’t want to be held liable for anything. While you can assume that nothing may ever happen, that might not always be in the cards. Sometimes accidents happen and one needs to be ready to tackle them head-on.
Personal Auto Policies Have Limitations
The thing is, a personal auto policy is going to have certain limitations, and you have to be aware of them. When running a small business, you might just need a little more coverage. Exclusions that you should be aware of include livery exclusions and a commercial auto exclusion. Know what these things are and how to deal with them later. Check with your carrier to make sure what is and isn’t included in your policy.
Personal Auto Policies May Lack the Coverage Your Business Needs
For example, a policy limit might cap out at $500,000, and you might need more coverage than that. If an employee is in a car accident while on the job, you’re going to want to make sure that they’re covered, as well as whoever they were in a collision with. Personal auto policies can sometimes lack the dire coverage that your business may need.
If you’re still concerned about your coverage, contact your Glen Rock small business insurance agent today to learn more about how you can keep your small business protected.
About David G. Sayles Insurance Services
At David G. Sayles Insurance Services, we strive to protect the investments of homeowners like you. Our comprehensive policies are customized for you to provide the exact coverage you need. For more information, contact us today at (800) 439-0292.